Constructive Fraud, Defined

Constructive
fraud is a legal
fiction describing a situation where a person or entity gained an
unfair advantage over another by deceitful or unfair methods. Intent does not
need to be shown® as in the case of actual fraud. Some unfair methods may include
not telling customers about defects in a product.®

The elements
are:®

a duty owing by the party to be charged to the
complaining party due to their relationship;®

violation of that duty by the making of
deceptive material misrepresentations of past or existing facts or remaining
silent when a duty to speak exists;

reliance thereon by the complaining party;

injury to the complaining party as a proximate
result thereof; and

the gaining of an advantage by the party to be
charged at the expense of the complaining party.

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ORA was founded in 1991 by Richard A. Rinaldi and is an acronym for Operations Research Associates with a logo depicting an abstract time concept relating to business cycles and time management. The practice focus areas are executive mentoring, in-house training and business strategy formulation with cash optimization the driving objective.